S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4068--A
     Cal. No. 345
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             February 2, 2017
                                ___________
 
 Introduced  by Sens. MARCHIONE, KENNEDY -- read twice and ordered print-
   ed, and when printed to be  committed  to  the  Committee  on  Racing,
   Gaming and Wagering -- reported favorably from said committee, ordered
   to  first  and  second  report,  ordered to a third reading, passed by
   Senate and delivered to the  Assembly,  recalled,  vote  reconsidered,
   restored  to  third  reading, amended and ordered reprinted, retaining
   its place in the order of third reading
 
 AN ACT to amend the tax law, in relation to video  gaming  machines  and
   disposition of revenues
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Clause (H) of subparagraph (ii) of paragraph 1 of  subdivi-
 sion  b  of section 1612 of the tax law, as amended by section 1 of part
 QQ of chapter 59 of the laws of 2017, is amended to read as follows:
   (H) notwithstanding clauses (A), (B), (C), (D), (E), (F)  and  (G)  of
 this  subparagraph, the track operator of a vendor track and in the case
 of Aqueduct, the video lottery  terminal  facility  operator,  shall  be
 eligible for a vendor's capital award of up to four percent of the total
 revenue  wagered at the vendor track after payout for prizes pursuant to
 this chapter, which  shall  be  used  exclusively  for  capital  project
 investments  to improve the facilities of the vendor track which promote
 or encourage increased attendance at the video lottery  gaming  facility
 including,  but  not limited to hotels, other lodging facilities, enter-
 tainment  facilities,  retail  facilities,  dining  facilities,   events
 arenas,  parking  garages  and  other improvements that enhance facility
 amenities; provided that such capital investments shall be  approved  by
 the division, in consultation with the [state racing and wagering board]
 GAMING  COMMISSION,  and  that  such vendor track demonstrates that such
 capital expenditures will increase  patronage  at  such  vendor  track's
 facilities and increase the amount of revenue generated to support state
 education  programs.  The  annual amount of such vendor's capital awards
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD02966-04-7

 S. 4068--A                          2
 
 that a vendor track shall be eligible to receive shall be limited to two
 million five hundred thousand dollars, except  for  Aqueduct  racetrack,
 for  which  there  shall be no annual limit, provided, however, that any
 such  capital  award  for  the  Aqueduct video lottery terminal facility
 operator shall be one percent of the total revenue wagered at the  video
 lottery terminal facility after payout for prizes pursuant to this chap-
 ter  until  the earlier of the designation of one thousand video lottery
 devices as hosted pursuant to paragraph four of subdivision a of section
 sixteen hundred seventeen-a of this chapter or April first, two thousand
 nineteen and shall then be four percent of the total revenue wagered  at
 the  video lottery terminal facility after payout for prizes pursuant to
 this chapter, provided, further, that such capital award shall  only  be
 provided  pursuant  to  an  agreement  with the operator to construct an
 expansion of the facility, hotel, and convention  and  exhibition  space
 requiring a minimum capital investment of three hundred million dollars.
 Except for tracks having less than one thousand [one] NINE hundred video
 gaming  machines,  and  except  for a vendor track located west of State
 Route 14 from Sodus Point to the Pennsylvania border  within  New  York,
 and  except for Aqueduct racetrack each track operator shall be required
 to co-invest an amount of capital expenditure equal  to  its  cumulative
 vendor's  capital  award. For all tracks, except for Aqueduct racetrack,
 the amount of any vendor's capital award that is not used during any one
 year period may be carried over  into  subsequent  years  ending  before
 April first, two thousand eighteen. Any amount attributable to a capital
 expenditure  approved  prior  to  April first, two thousand eighteen and
 completed before April first, two thousand twenty; or approved prior  to
 April  first,  two thousand twenty-two and completed before April first,
 two thousand twenty-four for a vendor track located west of State  Route
 14 from Sodus Point to the Pennsylvania border within New York, shall be
 eligible  to  receive  the  vendor's  capital award. In the event that a
 vendor track's capital expenditures, approved by the  [division]  GAMING
 COMMISSION  prior  to  April  first, two thousand eighteen and completed
 prior to April first, two thousand twenty,  exceed  the  vendor  track's
 cumulative capital award during the five year period ending April first,
 two  thousand eighteen, the vendor shall continue to receive the capital
 award after April first, two thousand eighteen until such approved capi-
 tal expenditures are paid to the vendor track subject  to  any  required
 co-investment. In no event shall any vendor track that receives a vendor
 fee pursuant to clause (F) or (G) of this subparagraph be eligible for a
 vendor's  capital  award  under  this  section. Any operator of a vendor
 track which has received a vendor's capital award,  choosing  to  divest
 the capital improvement toward which the award was applied, prior to the
 full depreciation of the capital improvement in accordance with general-
 ly  accepted accounting principles, shall reimburse the state in amounts
 equal to the total of any such awards. Any capital  award  not  approved
 for  a  capital  expenditure at a video lottery gaming facility by April
 first, two thousand eighteen shall be deposited into the  state  lottery
 fund for education aid; and
   § 2. This act shall take effect immediately.